Property

Housing credit support package comes to an end

With all capital now exhausted, the VND30 trillion ($1.34 billion) housing credit support package has come to an end, according to the State Bank of Vietnam (SBV).

From March 31 commercial banks will not be permitted to grant new credit from the package.

The amount of credit expended from the package as at February 29 was more than VND29.65 trillion ($1.32 billion), to some of 45,000 borrowers, with over VND20.9 trillion ($939.18 million) disbursed.

The housing credit support package was introduced in mid-2013 and targeted low-income customers, increasing supply and demand of low-cost housing, and improving market liquidity, as the real estate sector was recovering from the crisis that struck in 2011. In the three years since its introduction the package was amended many times in regard to targeted borrowers and interest rates, etc., to hasten disbursement.